P5-54 Monthly loan paymentsTim Smith is shopping for a used luxury car. He has found one priced at $30,000. The dealer has told Tim that if he can come up with a down payment of $5,000, the dealer will finance the balance of the price at a 6% annual rate over three years (36 months).

Assuming that Tim accepts the dealers offer, what will his monthly (end-of-month) payment amount be?

Use a financial calculator or spreadsheet to help you figure out what Tims monthly payment would be if the dealer were willing to finance the balance of the car price at a 4% annual rate.